Gold rises after second Greek bailout approved
Gold prices appreciated on February 21, as precious metals buyers responded to news of a second Greek bailout by pushing the value of the commodity higher.
April gold futures were most recently trading $13.40 higher at $1,739.30 an ounce, according to Kitco News. Spot gold was $3.80 per ounce higher at $1,738.50. The contract rose to as high as $1,756.41 before paring its gains to trade at $1,755.19 an ounce by 11:30 a.m. EST, Reuters reports.
Markets reacted to news that Euro zone finance ministers had approved a 130 billion euro bailout for Greece, according to the media outlet. Market experts stated that the decision by the euro zone officials gave the troubled nation more time, but made observers worried about the country's financial strength.
"Gold gets a boost from the EU kicking the can down the road," Rob Kurzatkowski, senior commodity analyst at optionsXpress, told the media outlet. "Not only does the bailout perhaps delay the inevitable (Greek bankruptcy), but it also opens the door for higher inflation across the euro zone."
Rising prices in the region could cause precious metals buyers to put upward pressure on the safe haven asset.
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